Finance Department is responsible for the supervision and control of Provincial Finances, Preparation of Provincial Budget, Formulation and Interpretation of Financial Rules, Civil Servants Rules related to Pay, Allowances and Pension, Management of Public Funds, Management of Public Debit, Banking, Coordination of National and Provincial Finance Commissions, Administration of Local Fund Audit and Treasuries.

Finance Department, GoKP is implementing an IDA funded Khyber Pakhtunkhwa Revenue Mobilization & Public Resource Management Program (KPRMP). The program has been signed on June 17, 2019, for the financing of USD $118 million under two major components:

  • Program for Results (USD $100 million for the envisaged areas/ results, to strengthen and support the provincial government reforms agenda on revenue mobilization and public resource management) and
  • Technical Assistance (USD $18 million for the operationalization of Program Coordination Unit (PCU), Shared Services Unit (SSU) and business process mapping review of government process and onward automation provincial government essential processes

Component I- Program for Results has been prepared for USD $100 million, which includes indicators for reform initiatives and corresponding targets, which will trigger the disbursements to provincial government as result of achievements of targets across 5 years of the program.

  • Efficient Revenue Mobilization
    • STS Compliance: % registered taxpayers who filed their returns in past year
    • Database integration in tax administration
    • UIPT surveys (# of cities with updated surveys, valuations and digitized UIPT records
  • Public Resource Management
    • Cash management based on regular consolidation of cash balances and regular cash plans
    • Improved management of Pension Fund assets & liabilities
    • % of ADP funds allocated to unapproved projects
    • # of TMAs using FMIS to record transactions

Component 2- Technical Assistance and Capacity Building:

2.1          Providing Foundational Support for e- Government Functionality

The objective of this component is to improve the GoKP’s e-Government functionality and equip them to facilitate administrative processes in a few selected government departments. The Program will support the government to undertake a review of the full business processes in selected departments to determine the current state (“as is”), propose an action plan for the expected state (“to be”), and provide end to end automation for administrative processes in a few selected departments. This component will finance activities related to business process mapping, automation of government administrative processes, and provision of the requisite ICT equipment and infrastructure for implementation.

2.2          Program Coordination and Support

The objective of this sub-component is to support Program coordination and implementing departments to undertake their activities in a timely manner enabling them to achieve the targeted outcomes. The sub-component will finance the following activities:

  1. Program Coordination
  2. Capacity Building
  3. Communications and Stakeholder outreach
  4. Program Monitoring, Evaluation and Verification
  5. Third Party Verification,
  6. Internal Audit